Viacom's Guidance Shredded Because Of Teenage Mutant Ninja Turtles

Shares of Viacom, Inc. VIAB spiked down nearly 4 percent early Friday (but soon recovered) after the company provided an update its June quarter guidance.

Viacom said its third quarter results will be impacted by the "disappointing" domestic performance of its latest film, 'Teenage Mutant Ninja Turtles: Out of the Shadows." The company did add its movie slate for the coming months remains "strong."

Viacom said it expects to earn $1.00 to $1.05 per share in the third quarter, below the $1.38 per share Wall Street analysts were expecting.

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The company also cited its poor third quarter outlook to a delay in completing a "significant" SVOD (streaming video on demand) agreement, which was expected to finalize in the quarter. However, the recent and "highly public" governance controversy negatively impacted the timing of the deal closing and the company's ability to achieve an optimal outcome with its partners.

Viacom also expects domestic ad sales declines for the quarter to be around 4 percent.

Shares traded recently at $44.25, down 1.8 percent.